Tenant under-paying rent

jennikitten

You should still send them a letter, it's useful if you have to dispute it later on. Besides, what would you do if they did something to the property & then you couldn't take the full deposit?

If they couldn't pay any of it or only a small amount, then I'd assume they were struggling financially or not getting proper benefits through as someone suggested. Underpaying by £10 per month is taking the !!!! though.

Out of interest, how are you calculating months? Calendar months or divided by 52 weeks?

tbs624

ironflower wrote: »

.... A reputable agent who truly has the Investor's interests at heart looks at doing a credit check, securing a guarantor for the property and does a home visit with the prospective tenant in order to examine the state of their current abode.
Interesting what a cup of tea and kitkat in their living room will teach you

Many folk would consider such an LA to be overstepping the mark. They are conducting business and its the Ts prerogative to choose to conduct that in the LAs office, rather than at their current home. If you want to know if the T looks after a property talk to the current & previous LLs.

If an LA wishes to insist on consuming a cup of tea and kitkat in the Ts current home, then the T should insist that they remove their shoes, seat them in a chair lower than the one used by the T (pref one used by the Ts permitted long haired cat/dog/ incontinent elderly relative) and then charge the LA an exorbitant (non-refundable) Hospitality Fee........;)

tbs624

OP - much obviously depends on the type of person you have in place as a T. With some, a calm f2f meeting may bring about the necessary result. For sothers, you need to be more persistent.

if the T is underpaying what was the actual rent figure then simply write a formal letter, confirming what it says in the contract as the rent figure, and enclosing a Rent Statement. Request that they bring the shortfall up to date within 7-10 working days.
If no response in that timeframe, write again, giving a further 5 days. Mention that the shortfall may be deducted form the tenancy deposit ( provided that the tenancy agreement says it may used for rent purposes)


Tell the T also that failing to pay the rent in full, and on time, may lead to the loss of their home and poor references - there are applicable *discretionary* Grounds for repossession of the property (Housing Act 1988, S8/Schedule 2):
Ground 10

Some rent lawfully due from the tenant—
(a)is unpaid on the date on which the proceedings for possession are begun; and
(b)except where subsection (1)(b) of section 8 of this Act applies, was in arrears at the date of the service of the notice under that section relating to those proceedings.
Ground 11

Whether or not any rent is in arrears on the date on which proceedings for possession are begun, the tenant has persistently delayed paying rent which has become lawfully due.

Note that they are *discretionary* Grounds (and a T can defeat G10 by paying up immediately prior to the hearing) .

Serve a S21 Notice of Intent to Repossess in good time, as a back up. This allows the LL to pursue a court order for repossession of the property after expiry of the Fixed Term

ironflower

tbs624 wrote: »

Many folk would consider such an LA to be overstepping the mark. They are conducting business and its the Ts prerogative to choose to conduct that in the LAs office, rather than at their current home. If you want to know if the T looks after a property talk to the current & previous LLs.

If an LA wishes to insist on consuming a cup of tea and kitkat in the Ts current home, then the T should insist that they remove their shoes, seat them in a chair lower than the one used by the T (pref one used by the Ts permitted long haired cat/dog/ incontinent elderly relative) and then charge the LA an exorbitant (non-refundable) Hospitality Fee........;)

whoa.
It was something of a gentle suggestion, not a mandate that it must be done. And tbh, 2 out of 3 agencies that I have dealt with have done this as well as references. It's not obligatory, but provides opportunity for feedback on both sides.

nevermind though...

Wings

I would rather a tenant pay me £450 a month rather than nothing, £10 short on rent, I would keep the tenant happy and so long as they kept paying the £450, i would put the difference/issue to bed.

DVardysShadow

Wings wrote: »

I would rather a tenant pay me £450 a month rather than nothing, £10 short on rent, I would keep the tenant happy and so long as they kept paying the £450, i would put the difference/issue to bed.

Can I rent with you? I reckon I could have you for £35/month, easy

925dancer

ironflower wrote: »

Couple of things --

1) are the tenants private or did you secure them through an agency?
2) are they working, or on benefits?

the reason I ask 1) is because if they came through a letting agency, make the agent recover the rent for you, they should be managing the property on your behalf and that includes recovering rental arrears.
If not, and they are a private tenant (though secured by you) then you still have your signed tenancy agreement. Do you have a clause or stipulation within the agreement for a case of non-paying rent?
--- typically this is usually that the LL can recover possession of the property due to non-payment of rent.
If not, you can put in writing that you intend to amend the AST, or that you wish to recover payment, within a certain period of time.

Put it in writing, give them a period of time (7-14 days perhaps) and you have the option of Section 21 Notice if needs be. That usually is persuasive enough.

The reason I ask 2) is, if they are working, do as above.
If not, and their rent is paid via the LHA / Council, you can request the full rent entitlement to come direct to you (the LL) if it is more than 8 weeks in arrears.

Hope that helps.

Just to pick up on something that isn't entirely accurate here. Many, in fact most landlords in this country use an LA for tenant find only, once the tenant is in place and fees paid there is no further responsibility for the LA to have anything to do with the management of the property.

They only manage the property if being paid an additional fee to do so. The likelihood of any landlord in this country having their property fully managed is fairly small as most choose to manage themselves even if they use an agent to find the tenant.

If this is the case, underpayment of rent and the recovery of those monies has nothing to do with the agent.

silverchair

ironflower wrote: »

ouch -- talking from experience? I hope not!!

I would say sometimes it's down to luck, sometimes it's down to the agent. A reputable agent who truly has the Investor's interests at heart looks at doing a credit check, securing a guarantor for the property and does a home visit with the prospective tenant in order to examine the state of their current abode.
Interesting what a cup of tea and kitkat in their living room will teach you

OH No I accidently thanked you
"home visit" You cannot be be serious. Thats ridiculous!!!